Loans for young people

You might assume that it is the case that if you are a young person, particularly under the age of 25, that it may well be difficult to get access to finance. This is usually owing to the lack of credit history young adults tend to typically have, which in some cases, can make it harder to get accepted for a loan. However, it is definitely far from impossible! Here at Proper Finance, we work with a variety of leading, reputable and FCA authorised lenders, many of whom would be willing to grant loans to young people.  Before we get to what type of loan you should choose (there isn’t just one category), we will explain in detail in this guide the options that you have available to you, so that you can then make an informed decision as to what is the best option for you in your personal circumstances.

Getting a loan when you are younger

Generally speaking, it can be just that little bit harder for young people to get approved for a loan. This can be for a whole host of reasons, such as being seen as more of a risk to lenders due to their lack of credit history, a lack of a steady income to provide to lenders, or perhaps as they have little, or perhaps no experience whatsoever, of paying back debt so far.

Of course, if you are young and have experience of having a credit card, as well as paying back any debt you have and have a reliable income, getting accepted for a loan is likely to be easier for you.

What age is the hardest to get a loan?

As a rule of thumb, you will find that getting approval for a loan if you are under the age of 25 is the most difficult. However, it works in the same way for those who are over the age of 60, who can also find it testing when it comes to getting accepted for finances.

Typically, lenders consider that there are ‘prime ages’ for borrowing, and this is largely down to risk factors usually associated with age. This means that lenders believe the older you are, the less likely you are to be able to make repayments in full back (to be particularly morbid…because there is a higher likelihood you will die). Meanwhile, for youngsters, the issue is more down to the lack of experience you have.

Do all young people have poor credit scores?

No, but unfortunately many do. Not because they have been reckless with their spending, but simply have a poor credit score due to never having taken out a loan before.

What is the minimum age to apply for a loan?

In terms of the lenders that Proper Finance works with, they will require someone to be at least over the age of 18 in order to apply. However, in certain cases, it may be required that a borrower is over the age of 21 in order to be granted a loan.

What loans can young people apply for?

Whilst getting accepted for a loan is not always an easy feat, it is still possible. For example, you could look at getting any of the following:

  • Guarantor loan: this is a type of loan aimed at those who have poor credit scores, which will often include young people too. The idea behind them is that you have a friend or family member with a good credit score guarantee the loan you are looking to get. If you do not keep up with loan repayments yourself, the nominated guarantor will be held legally responsible.
  • Personal loan: we work with a number of lenders who may well be willing to accept you for a personal loan. However, it is important to keep in mind that if approved, it may be for a small amount, and potentially at a higher interest rate due to the risk that they are taking on you.
  • Payday loan: if you are simply looking to gain access to funding on a short-term basis, perhaps a payday loan would be best. The idea being is that you pay off the amount on your next payday. Always use this kind of finance responsibly, as you do not want to end up in a cycle of debt.


Considered your options and now looking to make an application for a loan specifically for young people? Proper Finance can help you today. All we require from you is to click apply now on our website, fill in our online form which takes less than 10 minutes, and we can help you find the right loan for you. No need to spend hours perusing the web to try and find the best one, we do all the hard work on your behalf! So, get in contact with us today!